Arch Coal’s coking coal sales were flat at 1.5mn mt in Q1 2020 compared to the same quarter last year, although, they dropped 17.7pc from Q4 2019.
The company’s thermal coal sales decreased by 33.3pc to 0.2mn mt in Q1 2020 from 0.3mn mt in the same quarter a year ago.
The prices of coking coal sales per ton decreased by 30.5pc to $92.53/mt in Q1 2020 from $133.22/mt in Q1 2019 and by 5pc from $97.39/mt in Q4 2019. Thermal coal followed suit hitting $18.93/mt in Q1 2020, down by 43.1pc from Q4 2019 and by 45.4pc from the first quarter last year.
Arch calculated the cumulative average margin per ton at $23.93/mt in Q1 2020, down 53pc from $50.95 in the same quarter the prior year. However, the margin per ton increased by 16.8pc from $20.49/mt in Q4 2019. In Q1 2020, the company made significant progress in the build-out of the Leer South mine and took steps to fortify liquidity in the face of a rapidly weakening global economy, it reported in a press statement.
The coal company recorded a net loss of $25.3mn in Q1 2020, compared with a net income of $72.7mn in the same quarter last year. Adjusted EBITDA declined by 88pc to $12.9mn during the quarter from $107.3mn in Q1 2019, while revenues declined by 27pc to $405.2mn compared to $555.2 million in Q1 2019.
In February, Arch conducted a voluntary separation program to align its corporate support structure with its current operating profile including a 30pc reduction in corporate staffing levels.